Chart GBP/USD Update: Leaning lower
Cautious trade is giving way to the anticipated drift lower
| Level | Comment | Level | Comment | |||||
|---|---|---|---|---|---|---|---|---|
| R4 | 1.3600 | * | congestion | S1 | 1.3400 | * | congestion | |
| R3 | 1.3555 | ** | 76.4% ret of Sep-Nov fall | S2 | 1.3350 | * | congestion lows | |
| R2 | 1.3535~ | * | 24 Dec (m) high | S3 | 1.3300 | * | congestion | |
| R1 | 1.3500 | * | congestion | S4 | 1.3200 | ** | congestion |
Asterisk denotes strength of level
08:10 GMT - Cautious trade is giving way to the anticipated drift lower, as intraday studies turn down, with prices currently trading around 1.3435. Daily readings are negative, highlighting room for a retest of 1.3400. But rising weekly charts should limit any break in renewed buying interest/consolidation above the 1.3350 congestion lows. Following corrective trade, fresh gains are looked for. Resistance remains at congestion around 1.3500 and extends to the 1.3535~ monthly high of 24 December. However, a close above the 1.3555 Fibonacci retracement is needed to turn sentiment positive and extend November gains towards congestion resistance at 1.3600.